Syllabus Goals
Course Objectives
Our main learning goals are to acquire tools to:
1
construct models of micro-economic behavior,
2
identify their (built-in) limitations and
3
think critically about how to apply them to real-life.
4
write a research essay/proposal/project
Parreiras Microeconomic Theory Fall, 2020 3 / 28
Syllabus Goals
On Exactitude in Science
Jorge Luis Borges, Collected Fictions, translated by Andrew Hurley.
“In that Empire, the Art of Cartography attained such Perfection that
the map of a single Province occupied the entirety of a City, and the
map of the Empire, the entirety of a Province. In time, those
Unconscionable Maps no longer satisfied, and the Cartographers Guilds
struck a Map of the Empire whose size was that of the Empire, and
which coincided point for point with it. The following Generations,
who were not so fond of the Study of Cartography as their Forebears
had been, saw that that vast Map was Useless, and not without some
Pitilessness was it, that they delivered it up to the Inclemencies of Sun
and Winters. In the Deserts of the West, still today, there are Tattered
Ruins of that Map, inhabited by Animals and Beggars; in all the Land
there is no other Relic of the Disciplines of Geography.
Suarez Miranda,Viajes de varones prudentes, Libro IV,Cap. XLV,
Lerida, 1658.”
Parreiras Microeconomic Theory Fall, 2020 4 / 28
Syllabus Goals
On Exactitude in Science
Jorge Luis Borges, Collected Fictions, translated by Andrew Hurley.
“In that Empire, the Art of Cartography attained such Perfection that
the map of a single Province occupied the entirety of a City, and the
map of the Empire, the entirety of a Province. In time, those
Unconscionable Maps no longer satisfied, and the Cartographers Guilds
struck a Map of the Empire whose size was that of the Empire, and
which coincided point for point with it. The following Generations,
who were not so fond of the Study of Cartography as their Forebears
had been, saw that that vast Map was Useless, and not without some
Pitilessness was it, that they delivered it up to the Inclemencies of Sun
and Winters. In the Deserts of the West, still today, there are Tattered
Ruins of that Map, inhabited by Animals and Beggars; in all the Land
there is no other Relic of the Disciplines of Geography.
Suarez Miranda,Viajes de varones prudentes, Libro IV,Cap. XLV,
Lerida, 1658.”
Parreiras Microeconomic Theory Fall, 2020 4 / 28
Syllabus Goals
On Exactitude in Science
Jorge Luis Borges, Collected Fictions, translated by Andrew Hurley.
“In that Empire, the Art of Cartography attained such Perfection that
the map of a single Province occupied the entirety of a City, and the
map of the Empire, the entirety of a Province. In time, those
Unconscionable Maps no longer satisfied, and the Cartographers Guilds
struck a Map of the Empire whose size was that of the Empire, and
which coincided point for point with it. The following Generations,
who were not so fond of the Study of Cartography as their Forebears
had been, saw that that vast Map was Useless, and not without some
Pitilessness was it, that they delivered it up to the Inclemencies of Sun
and Winters. In the Deserts of the West, still today, there are Tattered
Ruins of that Map, inhabited by Animals and Beggars; in all the Land
there is no other Relic of the Disciplines of Geography.
Suarez Miranda,Viajes de varones prudentes, Libro IV,Cap. XLV,
Lerida, 1658.”
Parreiras Microeconomic Theory Fall, 2020 4 / 28
Syllabus Goals
On Exactitude in Science
Jorge Luis Borges, Collected Fictions, translated by Andrew Hurley.
“In that Empire, the Art of Cartography attained such Perfection that
the map of a single Province occupied the entirety of a City, and the
map of the Empire, the entirety of a Province. In time, those
Unconscionable Maps no longer satisfied, and the Cartographers Guilds
struck a Map of the Empire whose size was that of the Empire, and
which coincided point for point with it. The following Generations,
who were not so fond of the Study of Cartography as their Forebears
had been, saw that that vast Map was Useless, and not without some
Pitilessness was it, that they delivered it up to the Inclemencies of Sun
and Winters. In the Deserts of the West, still today, there are Tattered
Ruins of that Map, inhabited by Animals and Beggars; in all the Land
there is no other Relic of the Disciplines of Geography.
Suarez Miranda,Viajes de varones prudentes, Libro IV,Cap. XLV,
Lerida, 1658.”
Parreiras Microeconomic Theory Fall, 2020 4 / 28
Syllabus Goals
Reaching Our Goals
In this course, we will read and discuss Bouldrin and Levin’s book
“Against intellectual monopoly” in order to be exposed to real-life,
contemporary, economic issues.
However, as “Against intellectual monopoly” is intended to a
general audience (lawyers, policy makers, etc...), it lacks any
explicit economic modeling.
Most of this course will be devoted to studying the microeconomic
models covered in our lecture notes, which we will then apply to
some of the topics discussed in “Against intellectual monopoly”.
We will learn how to use computer algebra package, Mathematica,
which will be an indispensable tool.
Parreiras Microeconomic Theory Fall, 2020 7 / 28
Syllabus Coverage
Tentative Coverage
Besides all the chapters of “Against Intellectual Monopoly”, we shall cover
the following topics.
1
Mathematics: Taylor’s rule and the Chain Rule
2
Review: Consumer Theory with Many Go ods
3
Duality in Consumer Theory
4
Revealed Preferences
5
Welfare Analysis
6
Market Structure and Innovation
7
R&D Races
Parreiras Microeconomic Theory Fall, 2020 8 / 28
Syllabus Class
Class Information and policies
• Until Feb. 4th , we meet online Tuesdays and Thursdays, from 3:30 pm to 5:00 pm. See
Sakai>Calendar for the ZOOM link. Make sure to login to unc.zoom.us using the SSO
option.
• Please install Mathematica in the computer or laptop you intend to use with ZOOM so
you can share your screen/work. Avoid using a tablet/ipad for the ZOOM calls.
• Sakai will be used to schedule office hours meetings, post grades, course announcements,
readings, supplementary materials, messaging, problem sets, class ZOOM links, etc...
• This course requires synchronous participation through Zoom. You need to be in front of
your computer during the designated class time and be able to interact with your instructor
and classmates. Please, turn your camera and microphone on during class because you need
to be visible and audible to your instructor and your classmates during class.
• Some (but not all) ZOOM recordings of our class meetings may be available as a study
resource. However, synchronous participation in class is required. Recordings will be
accessible only to enrolled students, instructor, and teaching assistant. All recordings in
which students appear will be deleted after the end of the course. Feel, free to use a virtual
background if you need more privacy. However, your camera and audio must be on.
• Suggestions: Please, try to connect from a quiet environment without background noise
and, take class notes in a notebook..
• After Feb. 4th , we meet at the same times at the Genome Sciences Bldg., room G200.
The safety community standards (masks, six feet distancing,etc...) will be strictly enforced.
Parreiras Microeconomic Theory Fall, 2020 10 / 28
Syllabus Contact Information
Contact Info and Office Hours
1
Email: [email protected].
2
Please, use Sakai messages instead of regular email.
3
Office hours (OH) are by appointment only:
Wed: 3–4 pm,
Fri: 11 am–12 pm.
To schedule an OH meeting use Sakai > Sign-up. The sign-up
opens a week before and closes one day before the OH meeting.
Do not hesitate to email-me to schedule meetings outside regular
OH if your schedule conflicts with the regular OH.
Parreiras Microeconomic Theory Fall, 2020 11 / 28
Syllabus Exam Dates and Grading Policy
Evaluation
March 2nd — 1st Midterm
April 13th — 2nd Midterm
May 8th, Saturday, 4pm — Final Examination
Midterm grades account for 35% of the final grade.
Final examination grade is worth 35% of the final grade.
Ten or more problem sets and/or research readings: 20%.
Final Research Project: 10%.
The weight of any missing midterm (with justification) is
transferred towards the final exam.
Parreiras Microeconomic Theory Fall, 2020 12 / 28
Syllabus Exam Dates and Grading Policy
Computing Grades
Exam grades are converted into scores accordingly to:
Score = Exam Grade + 100 − max(Top Exam Grade, 50).
Assignments scores are identical to assignment grades.
Course grades are computed accordingly to the table:
letter grade min. score
A 95
A- 90
B+ 87
B 83
B- 80
C+ 77
C 73
C- 70
D+ 67
D 60
Parreiras Microeconomic Theory Fall, 2020 13 / 28
Syllabus Student Support Services
Student Support Services
The University of North Carolina at Chapel Hill facilitates the implementation of
reasonable accommodations, including resources and services, for students with
disabilities, chronic medical conditions, a temporary disability or pregnancy
complications resulting in barriers to fully accessing University courses, programs and
activities. Accommodations are determined through the Office of Accessibility
Resources and Service (ARS) for individuals with documented qualifying disabilities
in accordance with applicable state and federal laws. See the ARS Website for contact
Any student who is impacted by discrimination, harassment, interpersonal
(relationship) violence, sexual violence, sexual exploitation, or stalking is encouraged
to seek resources on campus or in the community. Please contact the Director of Title
Coordinators in the Equal Opportunity and Compliance Office
your specific needs. Additional resources are available at safe.unc.edu
CAPS is strongly committed to addressing the mental health needs of a diverse
student body through timely access to consultation and connection to clinically
appropriate services, whether for short or long-term needs. Go to their website:
caps.unc.edu or visit their facilities on the third floor of the Campus Health Services
building for a walk-in evaluation to learn more.
Parreiras Microeconomic Theory Fall, 2020 14 / 28
Syllabus First Week To Do List
To do list for the first week
1
If you are eligible for taking exams with Accessibility Resources,
please schedule with them within the first or second week of
classes and notify me.
2
If a) you have more than 3 final exams in more than 24 hours; b)
ECON510 is one of these exams; and c) you wish to re-schedule
one of your exams; then you MUST ask for an alternative date
before the first midterm. If you do not follow these procedures
your request will not be accommodated.
3
Place an order for the software Mathematica throughout
software.sites.unc.edu/software/mathematica/. The student
license is free. However, you must place an order.
Parreiras Microeconomic Theory Fall, 2020 15 / 28
Syllabus First Week To Do List
To do list for the first week
1
If you are eligible for taking exams with Accessibility Resources,
please schedule with them within the first or second week of
classes and notify me.
2
If a) you have more than 3 final exams in more than 24 hours; b)
ECON510 is one of these exams; and c) you wish to re-schedule
one of your exams; then you MUST ask for an alternative date
before the first midterm. If you do not follow these procedures
your request will not be accommodated.
3
Place an order for the software Mathematica throughout
software.sites.unc.edu/software/mathematica/. The student
license is free. However, you must place an order.
Parreiras Microeconomic Theory Fall, 2020 15 / 28
Syllabus First Week To Do List
To do list for the first week
1
If you are eligible for taking exams with Accessibility Resources,
please schedule with them within the first or second week of
classes and notify me.
2
If a) you have more than 3 final exams in more than 24 hours; b)
ECON510 is one of these exams; and c) you wish to re-schedule
one of your exams; then you MUST ask for an alternative date
before the first midterm. If you do not follow these procedures
your request will not be accommodated.
3
Place an order for the software Mathematica throughout
software.sites.unc.edu/software/mathematica/. The student
license is free. However, you must place an order.
Parreiras Microeconomic Theory Fall, 2020 15 / 28
Syllabus First Week To Do List
Class Discussion
During this course, we shall employ additional material from TV,
movies, or literature to discuss strategic related issues.
Sometimes, you may find the political or religious views; or the
profanity contained in the additional material offensive or
objectionable and you may feel uncomfortable.
I do not endorse any particular views ex but ...
Parreiras Microeconomic Theory Fall, 2020 16 / 28
Syllabus First Week To Do List
Class Discussion
During this course, we shall employ additional material from TV,
movies, or literature to discuss strategic related issues.
Sometimes, you may find the political or religious views; or the
profanity contained in the additional material offensive or
objectionable and you may feel uncomfortable.
I do not endorse any particular views ex but ...
Parreiras Microeconomic Theory Fall, 2020 16 / 28
Syllabus First Week To Do List
Class Discussion
During this course, we shall employ additional material from TV,
movies, or literature to discuss strategic related issues.
Sometimes, you may find the political or religious views; or the
profanity contained in the additional material offensive or
objectionable and you may feel uncomfortable.
I do not endorse any particular views ex but ...
Parreiras Microeconomic Theory Fall, 2020 16 / 28
Syllabus Class Discussion
Class Discussion
I believe that as part of your university education, it is important you
engage in critical thinking ,
while respecting different opinions expressed by your classmates. I will
strive to maintain a welcoming and inclusive environment even when
we discuss uncomfortable topics.
Parreiras Microeconomic Theory Fall, 2020 17 / 28
Syllabus Class Discussion
Real-life Applications
To discuss real-life applications, it is recommended that you read at
least one newspaper regularly, and pay special attention to economic
relevant events.
Moreover, if you are heading to graduation and the job-market I
suggest you follow a major newspaper such as the New York Times or
Wall Street Journal. Another good source of economic news is the
NPR podcast Planet Money.
Parreiras Microeconomic Theory Fall, 2020 18 / 28
Syllabus Assignments
Assignments
1
Assignments are posted on Sakai.
2
Past due assignments are not accepted without proper
justification.
3
Please be prepared to present and discuss the PS.
4
Most problem sets will be assigned to groups.
5
New groups will be formed randomly for each PS.
6
The grading criteria for the PS are:
grade solutions work presentation
4.0 correct explained reasonable
3.5 comput. err. explained reasonable
3.0 concept. err. explained reasonable
2.0 – omitted reasonable
1.0 – – poor
0 – – –
Parreiras Microeconomic Theory Fall, 2020 19 / 28
Syllabus Assignments
Assignments
1
Assignments are posted on Sakai.
2
Past due assignments are not accepted without proper
justification.
3
Please be prepared to present and discuss the PS.
4
Most problem sets will be assigned to groups.
5
New groups will be formed randomly for each PS.
6
The grading criteria for the PS are:
grade solutions work presentation
4.0 correct explained reasonable
3.5 comput. err. explained reasonable
3.0 concept. err. explained reasonable
2.0 – omitted reasonable
1.0 – – poor
0 – – –
Parreiras Microeconomic Theory Fall, 2020 19 / 28
Syllabus Assignments
Assignments
1
Assignments are posted on Sakai.
2
Past due assignments are not accepted without proper
justification.
3
Please be prepared to present and discuss the PS.
4
Most problem sets will be assigned to groups.
5
New groups will be formed randomly for each PS.
6
The grading criteria for the PS are:
grade solutions work presentation
4.0 correct explained reasonable
3.5 comput. err. explained reasonable
3.0 concept. err. explained reasonable
2.0 – omitted reasonable
1.0 – – poor
0 – – –
Parreiras Microeconomic Theory Fall, 2020 19 / 28
Syllabus Assignments
Assignments
1
Assignments are posted on Sakai.
2
Past due assignments are not accepted without proper
justification.
3
Please be prepared to present and discuss the PS.
4
Most problem sets will be assigned to groups.
5
New groups will be formed randomly for each PS.
6
The grading criteria for the PS are:
grade solutions work presentation
4.0 correct explained reasonable
3.5 comput. err. explained reasonable
3.0 concept. err. explained reasonable
2.0 – omitted reasonable
1.0 – – poor
0 – – –
Parreiras Microeconomic Theory Fall, 2020 19 / 28
Syllabus Assignments
Assignments
1
Assignments are posted on Sakai.
2
Past due assignments are not accepted without proper
justification.
3
Please be prepared to present and discuss the PS.
4
Most problem sets will be assigned to groups.
5
New groups will be formed randomly for each PS.
6
The grading criteria for the PS are:
grade solutions work presentation
4.0 correct explained reasonable
3.5 comput. err. explained reasonable
3.0 concept. err. explained reasonable
2.0 – omitted reasonable
1.0 – – poor
0 – – –
Parreiras Microeconomic Theory Fall, 2020 19 / 28
Syllabus Assignments
Assignments
1
Assignments are posted on Sakai.
2
Past due assignments are not accepted without proper
justification.
3
Please be prepared to present and discuss the PS.
4
Most problem sets will be assigned to groups.
5
New groups will be formed randomly for each PS.
6
The grading criteria for the PS are:
grade solutions work presentation
4.0 correct explained reasonable
3.5 comput. err. explained reasonable
3.0 concept. err. explained reasonable
2.0 – omitted reasonable
1.0 – – poor
0 – – –
Parreiras Microeconomic Theory Fall, 2020 19 / 28
Syllabus Assignments
Some words about math.
We will cover bits of optimization, set theory and proof reasoning but I
assume you have knowledge equivalent to Osborne’s (suggested
reading) mathematical appendix – please browse it – and please, do
report any doubts or questions to me as soon as possible I can help
you. Or check topics 1 to 2.3 in Martin Osborne’s tutorial.
Language of Set Theory
Basic Calculus (derivation and integration).
Probability (expectation of random variables)
Reading Proofs.
Finding Maxima and Minima.
Parreiras Microeconomic Theory Fall, 2020 20 / 28
On Math
Mathematics is a tool (language)
If f : [a, b] → R satisfies [∀x ∈ [a, b] and ∀ε > 0, ∃δ > 0; such that
|x − y| < δ ⇒ |f (x) − f (y)| < ε]
⇒ ∃z ∈ [a, b]; ∀x ∈ [a, b] f (z) ≥ f(x).
If a real-function defined on a closed interval on the real line is
continuous then it attains a maximum on the interval.
Parreiras Microeconomic Theory Fall, 2020 22 / 28
On Math
Mathematics is a tool (language)
If f : [a, b] → R satisfies [∀x ∈ [a, b] and ∀ε > 0, ∃δ > 0; such that
|x − y| < δ ⇒ |f (x) − f (y)| < ε]
⇒ ∃z ∈ [a, b]; ∀x ∈ [a, b] f (z) ≥ f(x).
If a real-function defined on a closed interval on the real line is
continuous then it attains a maximum on the interval.
Parreiras Microeconomic Theory Fall, 2020 22 / 28
FAQ
Questions & Answers
I understand the lecture notes but during the exams I am not able to
answer the questions. What am I doing wrong? How should I study for
this class?
The only way to make sure you understood the material is to solve
problems. Try to work in groups and try to solve as many problems as
you can. Do not be frustrated if you get stuck with a problem. The
problems where you get stuck are precisely the ones that are useful for
your study. They should serve as a guide to where the focus of your
reading should go and to which questions you should bring to class.
Parreiras Microeconomic Theory Fall, 2020 23 / 28
FAQ
Questions & Answers
I understand the lecture notes but during the exams I am not able to
answer the questions. What am I doing wrong? How should I study for
this class?
The only way to make sure you understood the material is to solve
problems. Try to work in groups and try to solve as many problems as
you can. Do not be frustrated if you get stuck with a problem. The
problems where you get stuck are precisely the ones that are useful for
your study. They should serve as a guide to where the focus of your
reading should go and to which questions you should bring to class.
Parreiras Microeconomic Theory Fall, 2020 23 / 28
FAQ
Questions & Answers
I am trying to solve problems but many of the posted or suggested problems
lack an answer key. How can I check if my work is correct? What use is to
solve a problem if I do not know whether my solution is correct?
The point of solving problems is not to come up with a right answer but
rather to elicit questions that you may have about the material. If you are
unsure about your work or answer this is good signal. Please do bring the
problem to class and express your doubts. If you faced a challenge when
trying to solve a problem and you are not sure of your answer or not sure on
how to proceed at some step, chances are, your colleagues have similar
questions and it is worth to discuss it in class.
The lack of an answer key is, for most of the cases, deliberate . It is designed
to give incentives for you to work the problems rather than trying to
memorizing solutions.
Parreiras Microeconomic Theory Fall, 2020 24 / 28
FAQ
Questions & Answers
I am trying to solve problems but many of the posted or suggested problems
lack an answer key. How can I check if my work is correct? What use is to
solve a problem if I do not know whether my solution is correct?
The point of solving problems is not to come up with a right answer but
rather to elicit questions that you may have about the material. If you are
unsure about your work or answer this is good signal. Please do bring the
problem to class and express your doubts. If you faced a challenge when
trying to solve a problem and you are not sure of your answer or not sure on
how to proceed at some step, chances are, your colleagues have similar
questions and it is worth to discuss it in class.
The lack of an answer key is, for most of the cases, deliberate . It is designed
to give incentives for you to work the problems rather than trying to
memorizing solutions.
Parreiras Microeconomic Theory Fall, 2020 24 / 28
FAQ
Questions & Answers
I am trying to solve problems but many of the posted or suggested problems
lack an answer key. How can I check if my work is correct? What use is to
solve a problem if I do not know whether my solution is correct?
The point of solving problems is not to come up with a right answer but
rather to elicit questions that you may have about the material. If you are
unsure about your work or answer this is good signal. Please do bring the
problem to class and express your doubts. If you faced a challenge when
trying to solve a problem and you are not sure of your answer or not sure on
how to proceed at some step, chances are, your colleagues have similar
questions and it is worth to discuss it in class.
The lack of an answer key is, for most of the cases, deliberate . It is designed
to give incentives for you to work the problems rather than trying to
memorizing solutions.
Parreiras Microeconomic Theory Fall, 2020 24 / 28
FAQ
Is this course useful?
for an Econ PhD
I want to go to grad. school in Economics. Microeconomic Theory is
very important for Economics, should I take this course?
No. In grad school, you will have several opportunities to take
Microeconomic Theory classes. If you want to increase your chances of
being accepted by a top program, you should take more classes at the
Mathematics Department.
Parreiras Microeconomic Theory Fall, 2020 26 / 28
FAQ
Is this course useful?
Econ and other fields
Would you recommend this course to any Econ, CS or Poli Sci major
or PPE minor?
Of course: if you want to learn more about when markets work (or
fail), this is a good course for you. If you plan to go to Law School,
grad school in Public Policy, Political Science, etc ... or if you just
want to learn for the sake of learning, this is a terrific course for you.
Parreiras Microeconomic Theory Fall, 2020 27 / 28
FAQ
Is this course useful?
Econ and other fields
Would you recommend this course to any Econ, CS or Poli Sci major
or PPE minor?
Of course: if you want to learn more about when markets work (or
fail), this is a good course for you. If you plan to go to Law School,
grad school in Public Policy, Political Science, etc ... or if you just
want to learn for the sake of learning, this is a terrific course for you.
Parreiras Microeconomic Theory Fall, 2020 27 / 28
FAQ
Is this course useful?
outside academia
I do not want to pursue (at the moment) any other future academic degree
after my graduation, I want to find a job related to economics or business:
industry, commerce or in the financial sector. But in real life people are not
fully rational, will I be able to use any of the “equations” I learn in this class?
What is the use of learning the equilibria of these artificial models?
Chances are, you will not write down a model for some concrete real-life
situation, solve for its equilibrium and make accurate predictions based on it.
But that does not mean that models are useless. Economic Theory may help
you avoid real-life pitfalls. Also check this Noah Smith’s article for several
interesting examples of applications of Microeconomics to real-life.
Parreiras Microeconomic Theory Fall, 2020 28 / 28
FAQ
Is this course useful?
outside academia
I do not want to pursue (at the moment) any other future academic degree
after my graduation, I want to find a job related to economics or business:
industry, commerce or in the financial sector. But in real life people are not
fully rational, will I be able to use any of the “equations” I learn in this class?
What is the use of learning the equilibria of these artificial models?
Chances are, you will not write down a model for some concrete real-life
situation, solve for its equilibrium and make accurate predictions based on it.
But that does not mean that models are useless. Economic Theory may help
you avoid real-life pitfalls. Also check this Noah Smith’s article for several
interesting examples of applications of Microeconomics to real-life.
Parreiras Microeconomic Theory Fall, 2020 28 / 28
